Islamabad, April 16, 2024 – In a recent update from the Federal Board of Revenue (FBR), the active taxpayers list (ATL) has seen a substantial surge, reaching a notable 3.93 million individuals.
This increase comes amidst mounting apprehensions regarding an impending crackdown on non-filers by tax authorities.
Released for the tax year 2023 and based on returns filed up to April 14, 2024, the updated ATL reflects a significant rise compared to figures from just a week prior. Remarkably, despite extended holidays for Eid-ul-Fitr, approximately 20,000 new active taxpayers were added during the week of April 7-14, 2024, during which the federal government had announced public holidays.
Experts attribute this surge primarily to the prevailing fears among individuals regarding an imminent crackdown by the FBR against those who have thus far evaded their tax obligations. Reports suggest that the FBR had compiled a list of individuals who have been skirting their duty to declare their assets and income, despite having taxable earnings.
The FBR’s issuance of the ATL for the tax year 2023 on March 1, 2023, initially listed 3.35 million active taxpayers. Since its launch, the ATL has seen an influx of approximately 580,000 new active taxpayers, indicating a growing compliance with tax regulations.
Being listed in the ATL offers tangible benefits for taxpayers, including access to reduced tax rates on various financial transactions. This serves as a compelling incentive for individuals to comply with tax laws. However, the FBR acknowledges that there are still individuals with taxable income operating outside the formal tax domain, largely due to the existence of unrecorded wealth.
Anticipating further expansion, tax authorities are optimistic about the ATL’s trajectory, particularly following the initiation of a documentation drive by the FBR. Notably, the FBR reported a record 5.75 million active taxpayers in tax year 2022, indicating a positive trend in tax compliance.
As the ATL continues to grow, the government aims to enhance revenue collection, promote financial transparency, and foster a culture of tax compliance among citizens. With stricter measures on the horizon, individuals are urged to fulfill their tax obligations to avoid penalties and contribute to the country’s economic development.
In conclusion, the surge in the ATL underscores a growing awareness among individuals regarding the importance of tax compliance, driven by both the fear of consequences and the desire to benefit from the incentives offered by the tax authorities.
